Ryanair first-half profit gains

Bloomberg

Ryanair Holdings Plc’s second-quarter profit rose 8% as a revenue boost from extras like speedy boarding and reserved seats outweighed the impact of lower fares and the grounding of Boeing Co’s 737 Max jetliner.
Net income increased to 910 million euros ($1 billion) from 841 million euros a year earlier, Europe’s biggest discount carrier said in a statement on Monday. Analysts had forecast earnings of 823 million euros.
Ryanair refined its full-year guidance to a profit between 800 million euros and 900 million euros, from a range of 750 million euros to 950 million euros. That’s based on expectations of a “slightly better fare environment than last winter.” It had a profit of 948 million euros in fiscal 2019.
The carrier said it now doesn’t expect to get its first Max jets until March or April as Boeing struggles to return the model back to service following two fatal crashes, after previously suggesting the planes might arrive in January or February. Only 20 aircraft will be in service by the summer versus the planned 58.
Ryanair plans to go ahead with base closures and job cuts to make up for the lower than expected capacity growth and absence of fuel efficiencies from the Max. Chief Financial Officer Neil Sorahan said the “door is open” to talks with UK pilots after a walkout early this year had a limited impact on operations. He said working conditions are better than those on offer to crews at rival carriers.
Uncertainties around Brexit mean the UK market, Ryanair’s biggest, requires “a lot of stimulation” as people are reluctant to spend money, Sorahan said.
Shares of Ryanair had advanced 15% this year last week’s close after declining almost 30% in 2018, when the carrier was rocked by strikes across its network.